The Canadian economy gained 12,000 jobs in August, bolstered by a gain in full-time employment, but more people were looking for work and the unemployment rate ticked higher for the first time in months, Statistics Canada said Friday.

The federal agency said the unemployment rate increased to 7.0 per cent for the month, up 0.2 from 6.8 per cent, where it had held steady for six consecutive months.

Economists had expected the economy to lose 4,500 jobs in August and the unemployment rate to remain at 6.8 per cent, according to Thomson Reuters.

The overall increase came as the number of full-time jobs grew by 54,400, offset in part by a drop of 42,400 part-time jobs.

Overall public sector employment gained 27,200 for the month, while the private sector gained 6,300 jobs.

The number of self-employed workers dropped by 21,600.

Statistics Canada also reported Friday that the unemployment rate for students aged 15-24 over the summer months from May to August was 16.8 per cent, similar to where it was during the same time last year.

That compared with an unemployment rate of 10.3 per cent for non-students in the same age category.

In a separate report, Statistics Canada reported labour productivity of businesses slipped 0.6 per cent in the second quarter following a 0.5 per cent decrease in the first quarter.

The agency said output of businesses decreased at a similar rate to the first quarter, while hours worked continued to increase.